Tokyo (SCCIJ) – Nomura Holdings, Japan’s leading investment bank, and the Swiss private banking group Julius Baer have entered into a strategic partnership for asset management in Japan. This represents a significant step forward for both firms’ strategic ambition for the Japanese market. Julius Baer gains access to the wealthy private clients of Japan’s leading securities firm, thereby expanding its presence in Japan. Nomura, in turn, intends for such clients to expand its offering currently focused on its home market to include the internationally oriented portfolio solutions of the Swiss private bank. Thus, Nomura can better meet the growing competition for such customers in Japan.
Investment by Nomura
Under the terms of the agreement, Julius Baer Group will keep a 60 percent stake while Nomura will acquire a 40 per cent shareholding in Julius Baer’s wholly owned subsidiary, Julius Baer Wealth Management Ltd. (JBWM). This subsidiary currently provides international wealth management services to Julius Baer’s high net worth client base in Japan. The new company will become an equity-method affiliate of Nomura.
Nomura’s strategic partnership with Julius Baer will enable the firm to offer new and highly trustworthy investment opportunities to its high net worth clients in Japan to help them manage their assets, the Japanese company said.
Upon completion of the transaction, the Swiss company will be renamed Julius Baer Nomura Wealth Management. Also, Nomura will work to further strengthen its partnership with Julius Baer and explore future opportunities to collaborate with the Swiss private bank.
Services for Japan-based clients
JBWM specializes in the provision of discretionary investment services for Japan-based clients with a successful 20-year track record. The portfolio management team, based in Zurich, provides discretionary mandate services via its senior relationship management professionals in the Tokyo office. The investment process pays particular attention to currency risks, and the team has been adept at navigating market cycles, aiming to preserve client capital during times of financial market distress, the Swiss private bank said.
Bernhard Hodler, CEO of Julius Baer Group Ltd., commented: “The strategic partnership with Japan’s premier securities firm represents a major milestone in our business strategy for Japan. Global financial markets are becoming increasingly complex, requiring skillful risk management, which is at the core of our offering in Japan. Working together with Nomura and its comprehensive domestic network and knowledge, we can best share our internationally diversified offering with a new audience and maximize the value of our presence in Japan.”
Nomura, founded in 1925, is an Asia-headquartered financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its four business divisions: Retail, Asset Management, Wholesale (Global Markets and Investment Banking), and Merchant Banking.
About Julius Baer
Julius Baer is the leading Swiss private banking group, with a focus on servicing and advising sophisticated private clients and a premium brand in global wealth management. At the end of June 2018, assets under management amounted to CHF 400 billion. Its principal operating company is Bank Julius Baer, with origins dating back to 1890. Headquartered in Zurich, Julius Baer is present in over 25 countries and more than 50 locations, including Hong Kong, Mumbai, Singapore and Tokyo.
Text: SCCIJ with material of Nomura and Julius Baer; Photo: Julius Baer Group